Inflation in 1863 and its effect on dollar value
Purchasing power decreased by 24.75% in 1863 compared to 1862. On average, you would have to spend 24.75% more money in 1863 than in 1862 for the same item.
In other words, $1 in 1862 is equivalent in purchasing power to about $1.25 in 1863.
The 1862 inflation rate was 14.77%. The inflation rate in 1863 was 24.75%. The 1863 inflation rate is higher compared to the average inflation rate of 1.94% per year between 1863 and 2020.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1863 was 12.60. It was 10.10 in the previous year, 1862. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.
Contents
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| Average inflation rate | 24.75% |
| Converted amount ($1 base) | $1.25 |
| Price difference ($1 base) | $0.25 |
| CPI in 1862 | 10.100 |
| CPI in 1863 | 12.600 |
| Inflation in 1862 | 14.77% |
| Inflation in 1863 | 24.75% |
Inflation by Country
Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1862 would be equivalent to £0.97 in 1863, an absolute change of £-0.03 and a cumulative change of -3.23%.
Compare these numbers to the US's overall absolute change of $0.25 and total percent change of 24.75%.
Inflation by Spending Category
CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. This chart shows the average rate of inflation for select CPI categories between 1862 and 1863.
Compare these values to the overall average of 24.75% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1862 → 1863 |
|---|---|---|---|
| Food and beverages | 0.00 | 0.00 | 1.00 |
| Housing | 0.00 | 0.00 | 1.00 |
| Apparel | 0.00 | 0.00 | 1.00 |
| Transportation | 0.00 | 0.00 | 1.00 |
| Medical care | 0.00 | 0.00 | 1.00 |
| Recreation | 0.00 | 0.00 | 1.00 |
| Education and communication | 0.00 | 0.00 | 1.00 |
| Other goods and services | 0.00 | 0.00 | 1.00 |
For all these visualizations, it's important to note that not all categories may have been tracked since 1862. This table and charts use the earliest available data for each category.
How to Calculate Inflation Rate for $1, 1862 to 1863
Our calculations use the following inflation rate formula to calculate the change in value between 1862 and 1863:
CPI in 1863
CPI in 1862
×
1862 USD value
=
1863 USD value
Then plug in historical CPI values. The U.S. CPI was 10.1 in the year 1862 and 12.6 in 1863:
12.610.1
×
$1
=
$1.25
$1 in 1862 has the same "purchasing power" or "buying power" as $1.25 in 1863.
To get the total inflation rate for the 1 years between 1862 and 1863, we use the following formula:
CPI in 1863 - CPI in 1862CPI in 1862
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
12.6 - 10.110.1
×
100
=
25%
News headlines from 1862
Politics and news often influence economic performance. Here's what was happening at the time:
- President Abraham Lincoln introduced "greenbacks", US paper currency.
- Louis Pasteur, along with Claude Bernard, perform the first pasteurization test.
- The US Civil War leads to New Orleans falling under Union command.
- All United States territories outlaw slavery.
Data Source & Citation
Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.
You may use the following MLA citation for this page: “Inflation Rate in 1863 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jun. 2020, https://www.officialdata.org/inflation-rate-in-1863.
Special thanks to QuickChart for their chart image API, which is used for chart downloads.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Average inflation rate | 24.75% |
| Converted amount ($1 base) | $1.25 |
| Price difference ($1 base) | $0.25 |
| CPI in 1862 | 10.100 |
| CPI in 1863 | 12.600 |
| Inflation in 1862 | 14.77% |
| Inflation in 1863 | 24.75% |